Politics
Thai Government Sets New Payment Deadlines for SME Suppliers
The Trade Competition Commission has approved new regulations to limit credit terms for SMEs, aiming to improve liquidity for smaller businesses.
According to a report by Prachachat Business on September 14, 2026, the Thai Trade Competition Commission (OTCC) has approved a draft regulation to standardize credit terms for Small and Medium Enterprises (SMEs). This move is designed to address the ongoing issue of large corporations delaying payments, which often creates significant liquidity challenges for smaller suppliers.
Under the new guidelines, large businesses must settle payments for agricultural products and primary processed agricultural goods within 30 days. For general trade, manufacturing, and service sectors, the payment deadline is set at a maximum of 45 days.
For residents and business owners in Thailand, this policy shift is intended to stabilize the supply chain and ensure that smaller vendors receive timely compensation for their goods and services. By reducing the time SMEs spend waiting for payments, the government hopes to foster a more equitable business environment.
While the commission has approved the draft, the specific implementation timeline and the enforcement mechanisms for these new credit term limits remain to be confirmed. Stakeholders are currently awaiting further details on how these regulations will be monitored and what penalties, if any, will be applied to large entities that fail to comply with the new payment windows.
